| The Dow Breaks Losing Streak As Techs Lag |
| Jul-25-2012 |
| Keywords: stocsk, dow, 3 day losing streak, apple, netflix, boeing, caterpillar |
Solid quarterly earnings help the Dow Jones Industrial Average snap a three-session losing streak, while the broader market continues to struggle.
The blue chip index today gained 59 points. The Nasdaq Composite lost 9 points on the day, while the S&P 500 finished fractionally lower.
The Dow today benefited from solid gains in the shares of Boeing and Caterpillar, both of which posted solid earnings and revenue beats. Both companies also raised their full-year earnings outlook well above analyst estimates. Aerospace giant Boeing gained 2.78% on the day. Caterpillar finished the session up 1.44%.
The tale was much different in the technology sector where the shares of Apple proved to be a huge burden. Apple's stock fell 4.32% on the day after badly missing earnings and sales targets. Not to be out-done, online movie streaming company Netflix plunged 36% after warning investors of possible future quarterly losses and expressed concern over meeting its 2012 new subscriber goal.
News on the housing market also dampened the mood of the market. The Commerce Department reported that new home sales in June dropped a steeper than expected 8.4%. That represents the largest monthly percentage decline since February 2011.
Oil futures edged higher despite a surprise build in weekly crude oil inventories. The Energy Department reported that weekly crude stocks jumped 2.7 million barrels. But tensions in the Middle East help support crude prices from the unexpected build. The September crude contract finished the session47 cents higher, settling at $88.97 a barrel.
Things turned ugly for Facebook in electronic trading, dropping more than 8%. The social media company's stock coming under pressure after social-game maker posted a surprise quarterly loss of 3 cents a share, and slashed its full-year earnings forecast by 75%. The shares of Zynga collapsing in after hours trading, plummeting more than 30%. |
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Posted by Lou Dobbs Staff at 11:00 AM Email to a friend |
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